Document Content

DECISION

On a number of policies for development of production forests in the 2007-2015 period

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 23, 2004 Law on Forest Protection and Development;

Pursuant to Resolution No. 73/2006/QH11 of November 29, 2006, of the XIth National Assembly, the 10th session, on adjustment of the targets and tasks of the project on planting of 5 million hectares of forests;

Pursuant to the Prime Minister's Decision No. 18/2007/QD-TTg of February 5, 2007, approving Vietnam's forestry development strategy to 2020;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Chapter I

GENERAL PROVISIONS

Article 1.- Guiding viewpoints on development of production forests

1. The State encourages organizations, households and individuals of all economic sectors to invest in planting forests and processing forest products in accordance with the law on forest protection and development.

2. Production forests are multi-purpose forests; planting of production forests aims at increasing incomes of foresters and contributing to environmental and ecological protection.

3. Organizations, households, individuals and communities may invest in and enjoy benefits directly from afforestation, exploitation and processing of timbers and forest products; the State shall provide partial support in terms of initial expenses to encourage forest development, concurrently pay for part of the environmental value brought about by planted forests, and offset the profit deficit caused by the silviculture's particularities.

4. Development of production forests must be attached with processing and consumption of forest products so as to keep silviculture stable and ensure its sustainable development.

5. Priority shall be given to support various economic sectors to invest in planting production forests in special difficulty-hit communes so as to create a momentum for forestry development in these communes. Special priority shall be given to support investment in planting of production forests in the Northwestern region, the Central Highlands and mountainous districts of the central provinces.

Article 2.- Objectives of development of production forests

1. To plant 2 millions hectares of production forests or 250,000 ha a year on average (including areas to be reforested after exploitation).

2. To create jobs and increase incomes of mountainous inhabitants so as to stabilize their life.

3. To facilitate the formulation as well as long-term and stable development of silvicultural markets, including seed supply and technical service markets, forest product processing markets and consumption markets.

Article 3.- Scope of regulation and subjects of application

1. Domestic organizations, households, individuals and communities operating under Vietnamese law that plant production forests, exploit or process forest products.

2. Projects governed by the Government's Decree No. 151/2006/ND-CP of December 20, 2006, and ODA-funded planted forests are not subject to this Decision.

Article 4.- Interpretation of terms

1. Post-investment support means a form of support under which organizations, households, individuals and communities with land planned for production forests organize afforestation by themselves and get paid by the State in accordance with this Decision after their planted forests are taken over after test.

2. Investment support means a form of partial support with investment capital from the state budget for organizations, households, individuals and communities to plant forests.

Chapter II

STATE POLICY ON INVESTMENT SUPPORT

Article 5.- Investment support for afforestation and forestry extension

1. Organizations, households, individuals and communities in extreme difficulty-hit communes (under the Prime Minister's Decision No. 164/2006/QD-TTg of July 11, 2006, approving the list of extreme difficulty-hit communes) that plant forests on bare land or hills planned for production forests are eligible for state budget capital support at the following specific levels:

a/ VND 3 million/ha, for planting big timber trees (to be exploited after 10 years) or indigenous trees; and VND 2 million/ha, for planting small timber trees (to be exploited before 10 years);

b/ VND 1 million/ha in addition to the support levels specified at Point a, Clause 1 of this Article, for planting forests in border communes.

c/ VND 1 million/ha in addition to the support levels specified at Points a and b, Clause 1 of this Article, for planting forests in communes where people have to resettle under hydropower projects with investment approved by the National Assembly.

2. Ethnic minority households, individuals and communities in communes other than those meeting with extreme difficulties (under the Prime Minister's Decision No. 164/2006/QD-TTg of July 11, 2006, approving the list of extreme difficulty-hit communes) that plant forests on bare land or hills planned for production forests are eligible for a support level of VND 2 million/ha each.

3. Forest-planting organizations, households, individuals and communities other than those specified in Clauses 1 and 2 of this Article are eligible for seedling or forest extension support at a maximum level of VND 1.5 million/ha; or VND 1.5 million/1,500 dispersed trees (equivalent to one hectare of planted forests), if they plant dispersed trees. Specific support levels shall be based on seedlings' prices announced annually by provincial-level People's Committees.

4. Organizations, households, individuals and communities planting assay forests (with new varieties, on new land) under a planning approved by a competent authority are eligible for capital support equivalent to 60% of the approved afforestation costs. Each model of assay forest planting may get support for not more than 2 hectares.

5. Forest extension support: VND 200,000/ha for 4 years (1 year for planting and 3 years for tending), for forests planted in extreme difficulty-hit communes (under the Prime Minister's Decision No. 164/2006/QD-TTg of July 11, 2006); and VND 100,000/ha in 4 years, for forests planted in other communes.

6. A lump-sum support of VND 50,000/ha shall be provided for survey, design and conclusion of afforestation contracts.

Support levels specified in Clauses 5 and 6 of this Article shall be calculated beside the total investment support for planting production forests specified in Clauses 1, 2 and 3 of this Article.

7. Forms of support: post-investment support and investment support. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, guiding in detail the order of, and procedures for, providing post-investment support and investment support.

8. Conditions for receiving support:

a/ Forest owners being organizations, households, individuals or communities must have land planned for production forests, which is allocated by a competent authority and granted a land use right certificate. For state enterprises, the land must be that for planting production forests, which has been contracted to households, individuals or communities for stable and long-term (50 years) use.

b/ Sources of seeds or seedlings for afforestation must originate from breeding establishments which have been accredited by a competent authority according to the Ministry of Agriculture and Rural Development's Regulation on management of forestry plant varieties.

Article 6.- Rights and obligations of organizations, households, individuals and communities (referred to as forest owners for short) in afforestation

1. Rights: To enjoy all products from planted forests, to freely circulate exploited products and be entitled to tax and land use levy incentives in accordance with current law.

2. Obligations: When exploiting products from planted forests, a forest owner shall remit into the state budget a sum of money equivalent to 80 kg of rice/ha/cycle of planted forests in order to set up forest development funds of communes, hamlets or villages, each of which will receive 50% of the sum.

With regard to production forest areas contracted by special-use forest or protection forest management units or state enterprises (referred to as the contracting party for short) to households, individuals or communities, forest owners shall pay only the above sum to the contracting party.

Within 12 months after exploiting planted forests, forest owners must organize reforestation according to regulations.

If forest owners have received the State's monetary support for afforestation but their forests fail to satisfy the state-prescribed criteria after 4 years, they must use their own capital for reforestation or refund to the state budget the monetary support amounts plus the commercial interests at the time of recovery of support money.

In case of forest loss due to force majeure circumstances such a natural calamities, fires or pests as determined under regulations of the Ministry of Agriculture and Rural Development, forest planters need not refund the received monetary support amounts.

3. With regard to areas of special-use forests or protection forests planted with capital of Program 327 and state budget capital sources under the project on planting of 5 million hectares of forests, which are now planned for production forests, forest owners' rights and obligations comply with Clauses 1 and 2 of this Article.

Article 7.- Investment support for planting and management of breeding forests and nurseries

1. The State shall provide investment support for the building, management and protection of breeding forests and nurseries, of which the State (including state enterprises and organizations set up by the State) shall directly manage only those of national importance with an area not exceeding 30% of the area planned for breeding forests or nurseries; the remaining area shall be allocated, sold or contracted to other economic sectors for management and business in accordance with law.

2. Breeding forests and nurseries managed by economic sectors must be governed by plannings approved by competent authorities, are eligible for investment support for construction of initial material foundations under projects approved by competent authorities. The maximum levels of state budget support for bio-forestry tasks, infrastructure construction and equipment and facility procurement are as follows:

a/ VND 35 million/ha, for newly developed nurseries;

b/ VND 25 million/ha, for newly developed breeding forests;

c/ VND 10 million/ha, for regenerated breeding forests;

d/ In addition to the above supports, a support of VND 100,000/ha/year shall be given to offset management expenses for breeding forests and nurseries for 5 years at most.

Article 8.- Investment support for building of high-quality seedling centers

1. Conditions for a seedling center to enjoy support:

a/ Being a tissue culture establishment which can produce 1 million seedlings/year.

b/ Having at least 3 hectares of land for building the center (including land for building houses, workshops and nurseries).

2. Conditions to enjoy investment support:

a/ Provinces without tissue culture establishments may each receive investment support for building a seedling center based on the conditions set in Clause 1 of this Article.

b/ It is a non-state enterprise or a state enterprise with an equitized breeding establishment of which the State holds not more than 50% of charter capital.

c/ It is an enterprise which contributes at least 30% of the total investment to the project on the building of a seedling center.

d/ It has an investment project on building of a seedling center, already appraised by the provincial-level Service of Agriculture and Rural Development, with investment decided by project owner.

e/ The result of investment in building of the seedling center is accepted by the provincial-level project management unit.

3. Items eligible for investment support: Building of offices, workshops, roads or electricity transmission lines; procurement of equipment and facilities, and payment for technologies.

4. The maximum level of the state budget support is VND 1.5 billion for a seedling center.

5. Order of providing support: The total sum of support shall be granted twice after take-over test, of which 70% shall be initially granted after the investor completes investment in items specified in Clause 3 of this Article and the remainder shall be granted after the investor has produced and consumed seedlings up to the center's designed capacity and the set seedling quality.

Article 9.- Investment support for nurseries

1. Conditions for nurseries to enjoy support:

a/ Being an establishment which nurture forest trees by the method of using cuttings, shoots, seeds or seedlings from tissue buds.

b/ Having a land area of at least 0.5 ha for a nursery.

2. Planning of nurseries: A commune or group of communes that has 1,000 ha of land planned for production forests may have a nursery. Existing nurseries should be used and the new ones should be built only under projects on planting of raw-material forests or where they are really necessary.

3. Conditions to receive support

a/ The nursery must be included in the provincial planning on production of forestry seedlings or a project on planting of raw-material forests.

b/ The nursery owner must commit to use the allocated land for production of seedlings for afforestation for at least 10 years.

c/ The nursery is under the use right of a non-state economic sector. If that sector has a portion of state capital (from state enterprises, protection forest or special-use forest management units), that portion may account for not more than 50% of the total investment.

d/ The nursery is built under an investment project already appraised by the district-level project management unit, with investment decided by the investor. Investment in projects on building nurseries in border communes must be decided by district-level People's Committees.

e/ The result of investment in building the nursery is accepted by the district-level project management unit.

4. Items eligible for investment support: construction of initial infrastructure, including power and watering systems, fences, material gardens, ground leveling, building of solid grounds.

5. Support levels: VND 200 million on average for building a new nursery; newly built nurseries in border communes are eligible for support corresponding to approved capital levels of projects; for nurseries improved and upgraded to the standards prescribed in Clause 1 of this Article, the support level for each must not exceed VND 50 million.

6. Order of providing support: Each support amount shall be granted twice after a nursery is accepted. Initially, 70% of the support amount shall be granted after the investor completes investment in the items prescribed in Clause 4 of this Article. The remainder shall be granted one year after the building of the nursery.

Article 10.- Support for investment in forestry roads

1. Boundaries for forest fire prevention and fight (firebreaks)

a/ Support conditions: Firebreaks used concurrently as roads for transportation of seedlings and supplies within a project area are built with 15-20m for every hectare under planning. In formulation of a project in support of investment in production forests, a planning on the system of firebreaks is required, which must involve participation of forest owners (including those contracted with forestland for afforestation in 50 years) in the project area. Such additional plannings may be formulated in accordance with this Decision for projects on planting production forests which have not yet received support for building firebreaks.

b/ The investment support level is VND 20 million/km, of which VND 15 million/km is for investment in construction of items of a firebreak while the remainder is used for its maintenance throughout the whole afforestation cycle.

c/ Order of investment, after-test acceptance, payment and settlement: After the provincial-level People's Committee allocates budget of a plan year, a district-level project management unit may itself make technical designs and cost estimates for firebreaks according to criteria promulgated by the Ministry of Agriculture and Rural Development and submit them to the district People's Committee for approval. After the approval, the district-level project management unit shall itself organize the building of firebreaks. Upon the completion, the district-level People's Committee shall organize after-test acceptance of the firebreaks in order to have a basis for payment and settlement with the state treasury. The district-level project management unit shall manage and maintain all firebreaks throughout the afforestation cycle.

2. Forestry roads: Projects on planting consolidated raw-material forests of 1,000 ha or more in service of specific processing plants in regions without motorways for transportation of products in rainy seasons may enjoy investment support for forestry roads at a level of not exceeding VND 300 million/km. Investors of afforestation projects are also investors of forestry road projects. The management of investment in, and building of forestry roads comply with current regulations.

Investment in the building of forestry roads may be made only upon the commencement of exploitation of planted forests.

Article 11.- Support for transportation of processed products in the northwestern region

1. Plants processing timbers from planted forests in the northwestern provinces (under Resolution No. 37/NQ-TW of April 1, 2004) are eligible for the state support for product transportation in the first five years after they start production. The support level complies with the Prime Minister's Decision No. 210/2006/QD-TTg of September 12, 2006, which is VND 1,000/ton/km (one thousand Vietnam dong).

2. Forms of support: post-investment support. Freight shall be calculated based on the distance from a plant to Hanoi, the major consumption center, by the shortest motorway, and based on the plant's actual capacity.

3. Order of support, take-over test, payment and settlement:

a/ A project of investment in plant construction must be approved by the president of the provincial-level People's Committee. After investment is made and the plant starts operation, the investor shall report to the president of the provincial-level People's Committee on investment results, who shall, within 20 working days, set up a council to test and take over the plant's actual capacity in order to have a basis for payment of support capital to the investor.

b/ Initially, 70% of the freight support shall be granted, the remainder shall be subtracted from the plant's annual tax amount payable to the state budget. The State shall make a separate entry of budget support provided directly to the plant in the next budget year after the plant starts operation. Each district may enjoy freight support for only one plant. From now to 2010, freight support shall be provided on a pilot basis for transportation of processed products from 1 or 2 plants in each province, provided that such plants fully meet the conditions specified in Clause 4 of this Article.

4. Conditions to enjoy support:

- The State shall provide support only for plants manufacturing artificial boards and particle boards or artificial boards and MDF boards in order to make full use of raw materials. For 20 years such a plant must not be relocated from the registered production area.

- A to-be-built plant must have the minimum actual capacity of 10,000 m3/year with 100% of brand-new equipment.

- The concerned enterprise must have planted production forests available for harvest, ensuring the supply of raw materials for the plant to achieve 50% of its designed capacity or the locality where the plant is located has a raw material area which can supply raw materials for the plant to achieve 100% of its designed capacity (the planted forest capacity serving as a basis for calculation of support for a plant is 100m3/ha).

- It is a non-state enterprise. If it is a state enterprise, only equitized wood processing establishments with not more than 50% of state capital may be given the support.

5. To encourage and give priority to households and individuals that have contributed planted forests as capital and forests to setting up joint-stock companies or cooperatives and received state support according to conditions stipulated in Clause 4 of this Article.

Article 12.- Sources of investment support capital

1. The central budget.

2. Local budgets: Based on this Decision, provincial-level People's Committees shall use revenues from the sale of standing trees, forest resource tax, fines on violations of the Law on Forest Protection and Development, environmental protection charges, revenues retained for hydropower plants and other revenue sources prescribed by law to ensure sources of capital for use in localities.

3. Total investment for implementation of this Decision is around VND 40 trillion, of which around VND 31 trillion will be mobilized from various economic sectors, VND 9 trillion from the state budget (VND 8 trillion from the central budget and VND 1 trillion from local budgets).

Article 13.- Investment support mechanism

1. From now to 2010: The central budget shall provide targeted support to local budgets.

2. After 2010: The central budget shall only focus on providing targeted support to provincial budgets which it still subsidizes. Other provinces shall arrange local budgets for implementation according to this Decision.

3. Assignment of plans: The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Finance in, integrating and assigning three-year stable afforestation plans to provinces. Presidents of provincial-level People's Committees shall assign three-year stable afforestation plans to project owners.

Chapter III

SOLUTIONS AND ORGANIZATION OF IMPLEMENTATION

Article 14.- Land

1. Plannings on bare land for production forests: Provinces with great unused forestland areas shall, after revising plannings on the three kinds of forest under the Prime Minister's Directive No. 38/2005/CT-TTg of December 5, 2005, take the initiative in planning bare land for production forests and announcing those plannings to call on economic sectors to invest in planting of those forests.

2. Allocation of land and grant of land use right certificates:

a/ The president of a provincial-level People's Committee shall direct the acceleration of the process of allocating land and granting land use right certificates to organizations, households and individuals under the Land Law. With regard to land areas contracted by organizations to households and individuals for afforestation that receive no support in terms of seeds or seedlings, supplies or techniques for three consecutive years and the contracting party only collect management charges or land rents, the provincial-level People's Committee president shall consider and decide on recovery of the contracted land, then allocate or lease that land and grant a land use right certificate to the contracted party.

b/ With regard to land planned for production forests which is currently managed by state organizations and not yet allocated to households, individuals or communities, such state organizations shall, before applying this Decision, contract the forestland on a long-term basis (50 years) to households, individuals or communities for planting production forests.

3. Forest owners may use at most 30% of the allocated land area without forests for investment in eco-tourism, convalescence or combined agro-fishery production, of which the land area for construction of infrastructure (roads, solid works, factories) accounts for 20% at most.

4. Funds

a/ Funds for formulation of land use plannings, allocation of land and forests, lease of land, contracting of land for planting production forests, formulation of projects in support of planting of production forests are allocated from the state budget according to Article 12 of this Decision.

b/ Organizations, individuals and households may advance their funds according to regulations for performance of the tasks specified at Point a, Clause 4 of this Article. The State shall refund the advanced amounts in the next budget year.

Article 15.- Investment support projects and investment-deciding agencies

1. Investors and formulators of projects on investment support for planting of production forests

a/ Projects on investment support for planting of production forests of households, individuals and communities on land areas planned for production forests in buffer zones of special-use forests or protection forests are formulated and invested by management units of the special-use forests or protection forests;

b/ Projects on investment support for planting of production forests of households, individuals and communities on land areas planned for raw material zones of state enterprises shall be formulated and invested by those enterprises;

c/ Projects on investment support for planting of production forests of non-state enterprises or cooperatives shall be formulated and invested by those enterprises or cooperatives on the basis of the actually allocated or leased land areas.

d/ For other afforestation land areas in a district, one or two projects on investment support for planting of production forests shall be formulated for afforestation by households, individuals and communities and investment by district ranger stations or border-guard stations.

e/ Projects on investment support for planting of production forests for households, individuals and communities are formulated simply as production plans, basically ensuring the principle of not overlapping projects on planting of production forests. It is necessary to determine the afforestation area on each forestry land lot, compartment or sub-zone and whether the land is bare or planted with forests, in compliance with the plannings on the three kinds of forest under the Prime Minister's Directive No. 38/2005/CT-TTg of December 5, 2005.

f/ The duration of implementation of a project on investment support for planting of production forests shall correspond the cycle of planted forests.

2. Investment-deciding agencies:

a/ Provincial-level People's Committees shall decide on investment in projects on investment support for planting of production forests specified at Point c, Clause 1 of this Article;

b/ District-level People's Committees shall decide on investment in projects on investment support for planting of production forests specified at Points a, b and d, Clause 1 of this Article;

3. Projects on investment support for planting of production forests with tree species prescribed in the Agriculture and Rural Development Ministry's Decision No. 16/2005/QD-BNN of March 15, 2005, approving the list of major forest tree species for production forests are exempt from assessment of environmental impacts.

Article 16.- Setting up of management units of investment support projects for planting of production forests at all levels (referred to as project management units for short); commune forest development units; rural or mountain village/hamlet forest development units (referred to as village forest development units)

1. Provincial-level project management units shall be set up under decisions of provincial-level People's Committees, based on the existing provincial-level management units of local projects on planting of 5 million hectares of forests.

2. District-level project management units: Investors in projects on investment support for planting of production forests defined at Points a, b and d, Clause 1, Article 15 of this Decision may set up district-level project management units under decisions of district-level People's Committees on the basis of existing management units of district projects on planting of 5 million hectares of forests.

With regard to projects on investment support for planting of production forests of non-state enterprises or cooperatives defined at Point c, Clause 1, Article 15 of this Decision, those enterprises or cooperatives shall decide to set up project management units and notify such to provincial-level agencies deciding on investment in those projects and relevant agencies.

3. Commune forest development units: A commune with 500 ha of forestland may set up a commune forest development unit under decision of the commune-level People's Committee president, which is composed of a commune-level People's Committee vice president as its head and commune rangers, agro-forestry officers and representatives of commune mass organizations as its members, totaling 5 at most. Each village forest development unit may nominate one member to participate in the commune forest development unit.

For communes where commune forestry units already exist, those units shall act as commune forest development units.

4. Village forest development units: A village with forestland area of 100 ha or more each may set up a village forest development unit under decision of the commune-level People's Committee president. Such a unit has 7-9 members, including the village chief, the village patriarch and representatives of mass organizations. The unit has the task of assisting forest owners to manage and protect forests and supervise afforestation by households, individuals and communities.

Article 17.- Powers and responsibilities of afforestation support project- management units at all levels

1. A provincial-level project management unit:

a/ To act as a management and supervision agency, not the investor of a project. To use the allocated fund for public information and dissemination of policies, professional training and retraining of district and commune officials.

b/ To organize the management and supervision of implementation of this Decision in the province;

c/ To directly conduct take-over test of planted forests, breeding forests, nurseries and seedling centers of non-state enterprises and cooperatives; to organize the take-over test within 20 working days after receiving an investor's written request.

2. A district-level project management unit:

a/ To act as an investor directly managing the implementation of a project;

b/ To formulate a project on investment support for planting of production forests and submit it to a competent authority for approval;

c/ To adjust capital for assigned bio-forestry works, which must not exceed the total capital amount of the project; adjustment may be made only from infrastructure works to bio-forestry works to ensure the project's implementation tempo;

d/ To assume the prime responsibility for, and coordinate with the commune forest development unit and village forest development unit in popularizing and disseminating policies specified in this Decision to each household, individual and community in the region covered by the project.

e/ To formulate and approve annual technical afforestation schemes based on seedlings' prices and criteria promulgated by the provincial-level People's Committee as well as technical afforestation processes promulgated by the Ministry of Agriculture and Rural Development.

f/ To enter into afforestation contracts (made according to the form set in this Decision) with households, individuals and communities (except for afforestation project-management units of non-state enterprises). Such a contract must be certified by the commune People's Committee and the village chief.

g/ To arrange forestry extension officers to guide and supervise households, individuals and communities in planting forests. Those officers shall take responsibility for areas and quality of planted forests of households, individuals and communities in the locality under their charge, from the time of commencement of afforestation till the end of the forest-tending period (1 year for afforestation and 3 years for forest tending). Where forest rangers are available, they shall be arranged to perform the tasks of forest extension officers.

h/ To organize take-over test of planted forests, breeding forests and nurseries of households, individuals and communities under the project, including the area of planted forests already given investment support and post-investment support so as to have a basis for payment and settlement with the state treasury. Lump-sum payment shall be made in the second year after afforestation, for planted forest areas eligible for post-investment support.

Annually, by the time of take-over test of planted forests, the district-level project management unit shall elaborate a take-over test plan and notify it in writing to each commune forest development unit and village forest development unit for coordination in take-over test of the forests.

i/ Bases for a district-level project management unit to pay afforestation support money to a forest owner include the afforestation contract, the seed/seedling purchase invoice, enclosed with a copy of the certificate of seed/seedling sources as prescribed in the Agriculture and Rural Development Ministry's Regulation on management of forest plant varieties and minutes on take-over test of planted forests (certified by the forest owner, the forestry extension officer and the district-level project management unit).

3. The charge for management of a project on investment support for planting of production forests is equal to 10% of the total bio-forestry investment support level in a locality, of which 0.5% is for the central level, 0.7% for the provincial level; 0.8% for the district-level steering board and 8% for the investor in a district-level project (who shall allocate 1% to the commune forest development unit and 1% to the village forest development unit). The management fund shall be used in accordance with current regulations.

Article 18.- Responsibilities of ministries, branches and localities

1. The Ministry of Agriculture and Rural Development:

a/ To assume the prime responsibility for, and coordinate with concerned agencies in, setting and promulgating processes and norms of expenses for formulation of projects on investment support for planting of production forests, forestland use plannings, allocation of forestland or forests, lease or contracting of forestland in implementation of this Decision.

b/ To guide localities in formulating and promulgating regulations on operation of project management units at all levels, steering boards for implementation of district-level projects, commune or village forest development units; regulations on management and use of commune or village forest protection and development funds;

c/ To promulgate criteria for national important breeding forests and nurseries directly managed by the State; to formulate a planning on the system of breeding forests and nurseries; to guide the allocation, sale and contracting of breeding forests and nurseries directly managed by the State to other economic sectors for management in accordance with law. To specify criteria for tissue-culture establishments of seedling centers and nurseries;

d/ To provide trademark registration support for seedling centers and nurseries. To upload on the seed management website of the Ministry of Agriculture and Rural Development all information on seed/seedling sources and breeding establishments which have been accredited by competent agencies. To build up a system of management information for monitoring and synthesizing implementation results;

e/ To set firebreak standards and formulate procedures for identification and liquidation of forests affected with natural calamities, fires or other force majeure circumstances;

f/ To coordinate with the Ministry of Planning and Investment and the Ministry of Finance in synthesizing annual, three-year and five-year plans on the state investment support in accordance with this Decision;

g/ To mobilize donors to provide financial or technical support. To use ODA sources in support of planting of production forests, construction of forestry infrastructure and training of officials at all levels for effective implementation of this Decision.

h/ To disseminate and popularize the policies prescribed in this Decision and those related to concerned subjects. To direct, inspect and supervise the implementation of this Decision.

2. The Ministry of Planning and Investment:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development in, balancing capital sources for annual, three-year and five-year plans, to be submitted to the Prime Minister for decision. To guide the process of elaborating and assigning plans to localities;

b/ To exercise the state management of investment; to coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Finance and provincial-level People's Committees in inspecting and supervising the implementation of this Decision.

c/ To assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development in, making and submitting to the Prime Minister three-year and five-year reports on comprehensive supervision and assessment of socio-economic impacts of implementation of this Decision in order to request adjustments or supplements in line with actual requirements.

3. The Ministry of Finance:

a/ To assume the prime responsibility for, and guide the state treasuries in, paying and settling state budget funds for implementation of this Decision;

b/ To coordinate with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development in synthesizing, elaborating plans on, and making annual, three-year and five-year budget cost estimates for implementation of this Decision.

4. Provincial-level People's Committees:

a/ To formulate land use plannings and announce them to call on all economic sectors to invest in planting of production forests.

b/ To formulate and approve plannings on nursery systems up to 2020 (after consulting the Ministry of Agriculture and Rural Development). To direct provincial/municipal Services of Agriculture and Rural Development in quickly granting certificates of standard seed sources according to the Agriculture and Rural Development Ministry's Regulation on management of forest plant varieties. To announce on the mass media accredited breeding establishments;

c/ Based on proposals of provincial/municipal Finance and Pricing Services and Agriculture and Rural Development Services, to announce prices and technical criteria of forest seedlings to be planted in localities in January every year, which shall serve as a basis for investors to pay and settle capital. Not to approve prices of seedlings on a case-by-case basis;

d/ To apportion state budget capital to support investment in projects. To direct project management units at all levels in ensuring capital sources for planted forests in the form of post-investment support; to approve investment projects according to regulations;

e/ To enhance the dissemination and popularization of policies in this Decision and those related to various administration levels, branches and enterprises of all economic sectors, households, individuals and communities in provinces for knowledge and implementation;

f/ To approve projects on investment support for planting of production forests according to Clause 2, Article 15 of this Decision and approve investment projects according to regulations;

g/ To direct, organize, inspect and supervise the implementation of this Decision.

5. District-level People's Committees:

a/ To set up district-level steering boards for implementation of projects, each comprising a vice president of the district-level People's Committee as its head and representatives of district departments and sections as well as mass organizations as its members, totaling around 7; to promulgate working regulations of the steering boards. In districts where exist steering committees for implementation of local projects on planting of 5 million hectares of forests, such committees shall act as district-level steering boards for implementation of the projects.

To decide on setting up of district-level project management units for households, individuals and communities participating in the planting of production forests.

b/ To allocate or lease land and grant land use right certificates to households and individuals participating in projects;

c/ To approve projects eligible for investment support according to their competence provided for in Clause 2, Article 15 of this Decision, and approve investment projects according to regulations;

d/ To direct forest ranger stations and commune-level People's Committees in making annual, three-year and five-year local afforestation plans in conformity with the state policies on development of forests.

e/ To disseminate and popularize this Decision to communes having forests.

6. Commune-level People's Committees:

a/ To decide on setting up of commune and village forest development units. To coordinate with district-level project management units in completing dossiers and procedures for allocation, contracting and lease of forestland to organizations, households and individuals for stable and long-term use;

b/ To supervise afforestation in localities; to post up at their offices lists of households and individuals participating in afforestation with their corresponding plantation areas, tree species and money amounts they receive in the year of implementation of a project;

c/ To disseminate and popularize this Decision in communes.

7. Responsibilities of village chiefs:

a/ To coordinate with district-level project management units and commune forest development units in disseminating this Decision to village households, individuals and communities;

b/ To supervise afforestation by village households and individuals; to publicize in villages lists of households and individuals participating in afforestation with their corresponding plantation areas, tree species and money amounts they receive in the year of implementation of a project.

Article 19.- This Decision takes effect 15 days after its publication in "CONG BAO." All previous regulations contrary to this Decision are annulled.

Article 20.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and heads of concerned agencies shall implement this Decision.